01—Abstract
Summary
Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
The Hershey Company reported third-quarter 2026 results for the quarter ended September 27, 2026, with consolidated net sales of $3,275.5 milliona, up 3.0%, and organic, constant currency net sales up 0.8%.
Reported net income was $580.8 millionb, or $2.88 per share-diluted, and adjusted earnings per share-diluted was $2.64. Growth was driven by net price realization of approximately 11 points, offset by volume declining approximately 10 points. Reported gross margin rose to 46.1% from 32.6%, and reported operating profit rose to $817.7 million, though the filing attributes part of this to derivative mark-to-market gains of $113.4 million.
The company updated its 2026 full-year outlook. Net sales growth is now expected to be about 5% (previously 4.5% to 5%), organic net sales growth about 3% (previously 3% to 3.5%), and adjusted EPS growth 36% to 38.5% (previously 32.5% to 35%). Reported EPS is projected at $8.00 to $8.26c and adjusted EPS at $8.58 to $8.74.
The outlook includes approximately $0.22d from tariff refunds received in Q3 2026 and $0.03 in Q2 2026, and excludes potential future tariff refunds. Segment performance was mixed. North America Confectionery net sales rose 1.6% with segment margin of 35.8%, while North America Salty Snacks net sales rose 22.3%, including the LesserEvil acquisition, but segment income fell 17.9%.
The International segment posted a loss of $30.0 million on net sales down 7.5%. Management described consumers as growing more cautious while expecting second-half demand creation initiatives to gain momentum.
02—Key points
Key Highlights
- Third-quarter net sales of $3,275.5 million, up 3.0%; organic, constant currency net sales up 0.8%
- Reported EPS of $2.88 diluted, up 111.8%; adjusted EPS of $2.64 diluted, up 103.1%
- Reported gross margin of 46.1% versus 32.6% a year earlier, aided by $113.4 million of derivative mark-to-market gains
- 2026 outlook raised for adjusted EPS growth to 36% to 38.5% from 32.5% to 35%; net sales growth now about 5%
- Volume declined approximately 10 points in the quarter, offset by net price realization of approximately 11 points
- North America Salty Snacks net sales up 22.3% with LesserEvil contributing about 20 points, but segment income down 17.9%
- International segment loss of $30.0 million in the quarter, with net sales down 7.5%
03—Questions
Frequently Asked Questions
How did Hershey perform in the third quarter of 2026?
Net sales rose 3.0% to $3,275.5 million, with organic, constant currency sales up 0.8%. Reported net income was $580.8 million, or $2.88 per diluted share, and adjusted EPS was $2.64.
What changed in the 2026 full-year outlook?
Adjusted EPS growth is now expected at 36% to 38.5%, up from 32.5% to 35%. Net sales growth is now about 5%, versus 4.5% to 5% previously, and organic net sales growth is about 3%, versus 3% to 3.5% previously. Reported EPS is projected at $8.00 to $8.26.
How much did tariff refunds and derivative gains affect results?
The 2026 adjusted EPS outlook includes approximately $0.22 from tariff refunds received in Q3 2026 and $0.03 in Q2 2026. In the third quarter, derivative mark-to-market gains totaled $113.4 million pre-tax, or $0.56 per diluted share, and are excluded from adjusted results.
Why did volume decline in the quarter?
The filing attributes the approximately 10-point volume decline to price elasticity in North America Confectionery and International, shipment timing and planned portfolio optimization in International, partially offset by growth in North America Salty Snacks.
What drove the International segment loss?
The International segment loss of $30.0 million reflected higher input and manufacturing costs and lower volumes, partially offset by net price realization, productivity program savings, and favorable mix.
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